An individual’s personal income tax rate is dependent on what percentage of their earned income is above the personal tax allowance of £11,000. Your personal allowance goes down by £1 for every £2 that your earned income exceeds £100,000m which means that your personal allowance is zero if your earned income is over £120,000.

The Advantages of Using Tax Software

Tax software is unquestionably cheaper than hiring a qualified tax professional. Your initial costs are reduced but at the expense of a professional’s expertise.


An accountant has to manage the workload of all their clients and so, once you are in a position where you have all the necessary and relevant paperwork in front of you, you can theoretically complete the process in a few hours whereas an accountant will work over a longer period.

If your personal affairs are straight forward, then good tax software will be able to guide you through the process relatively simply.

The Advantages of Hiring a Tax Professional

Better Software
Accountants pay a lot more for their tax preparation software than the products that are on offer to consumers cost. These sophisticated programmes can perform all sorts of tasks that help prevent human error causing problems with your tax return.

Human Touch
Having a good relationship with an accountant allows him or her to better understand your firm’s current situation and future goals. A tax professional will often make savings that a computer programme simply wouldn’t anticipate.

Your Questions Answered
A good accountant acts as a sounding board and can save you valuable time and help avoid errors that may arise from trying to locate the correct answer online.

Save Time
Unless you are lucky enough to have a straightforward Personal income tax situation, then a qualified professional will save you time dealing with complicated issues. That time that can be better spent on activities that generate revenue for your business.

The Bottom Line
Ultimately, there is no universally correct answer to the question of hiring a tax professional or doing your taxes yourself with software. Your comfort and familiarity with HMRC rules will be part of your decision, but the complexity of your finances should be the key deciding factor. Those with a single employer and few investments may save hundreds of dollars by preparing their taxes while those with business income or rental properties will find the expense of hiring an accountant to be worth their peace of mind and potential tax savings.

Your Bottom Line
Every time your accountant saves you time or money, it will be reflected in your bottom line. Money obviously so and time saved can be spent on activities that bring in more money.

  • Personal Income Tax
  • Planning Income Tax on Earnings
  • Planning for Income Tax for Savings
  • Property Tax

Personal Income Tax

Personal Income Tax

Personal income tax can be complicated for people who don’t take a good care of their tax procedures. When you plan your personal income tax payment properly, you will be able to get significant difference on the amount of tax that you are going to pay. You can take advantage of any opportunities, in order to minimize your tax bill. Managing your personal tax can also include some other additional options, including capital gain tax and also inheritance tax. This page is going to show you about how you can plan your personal tax without having any problems. Here are some important details that you need to know about this tax.

Planning Income Tax on Earnings

Planning Income Tax on Earnings

This is the most important thing that you have to consider, especially when planning your personal income tax. Your employer may provide various types of employee benefits. Some of these benefits may include employee incentive schemes, in order to provide tax advantages for all employees. When you plan your personal income tax, you also need to include the value of these benefits. These benefits may affect the overall tax value that you are going to pay. Planning your personal income tax can be very important to help you determine the amount of tax for your own income.

Planning your income tax should also consider the overall tax consequences and also value of your tax relief on your pension contributions. You need to take a look at the final occupational pension scheme that is available in your company before you start calculating your own income tax. Basic income tax planning should also include complete records and also preparation for your income tax return. You need to include all necessary details on your own self assessment tax return form that is available for you. All details should be mentioned, so you can avoid any tax issues that may occur in the future.

Planning for Income Tax for Savings

Planning for Income Tax for Savings

If you want to manage your own tax planning, you also need to take a look at this important detail. Income tax planning should also include the calculation of income tax treatment for your savings. You are going to include any transactions of your savings, especially when you transfer to your spouse for reducing ipersonal income tax. When it is possible, you can also eliminate the personal income tax from these savings. Don’t forget to include the capital gain tax, especially when you have some interests on your own savings. This capital gain tax has its own calculation that you need to know.

There are some other great options that you can take, especially when you have large savings on your account. You should consider using some other options that are available, so you can avoid paying any large tax legally. There are great tax breaks that you can get, especially when you invest in venture capital trust and also unquoted shares. These items should be qualified under the Enterprise Investment Scheme. You also need to learn about how you can make pension contributions on behalf of your own children, so you can have tax advantages from this situation.

Property Tax

Property Tax

If you have property, you also need to learn about the property tax. When you buy a property, you would like to pay the stamp duty tax to the council tax. However, you need to know that your main home can be exempted from the capital gain tax. You need to calculate the overall capital gain for your second home, investment land, properties, business premises, and any other types of commercial properties. It is highly recommended for you to plan on your income tax on property. This type of tax planning can be very vital for most people these days. You should learn about how you can calculate the overall capital gain tax from your property.

There are many other important details that you need to know, especially when you want find the right amount of tax that you have to pay. You need to have effective income tax planning, in order to avoid getting any tax issues in the future. You have to seek for professional advice on your circumstances. We are ready to provide complete tax consultation service with other people. We will offer some professional advisers who have a lot of experience in this tax calculation procedure. We will work with you for calculating the amount of personal income tax that you need to pay.

Personal Income Tax